Gold Price Forecast: XAU/USD nears $2,750 in record rally

Valeria Bednarik FXStreet

XAU/USD Current price: $2,744.80

United States Presidential election spurs concerns about the future of interest rates.
US Treasury yields extend their weekly gains amid a continued run to safety.
XAU/USD keeps reaching higher highs, bulls in full control of the pair.

Gold Price held at record levels on Tuesday, with XAU/USD trading as high as $2,745.01 during American trading hours. The bright metal maintains the positive tone amid the dismal market mood, given tensions in the Middle East and looming US elections.

Speculative interest began pricing in a slower pace of Federal Reserve (Fed) interest rate cuts amid concerns former President Donald Trump may win the presidential race. Trump’s policies on taxes and tariffs are seen as a potential booster for inflation and even increased odds for interest rate hikes. Government bond yields extended their advance, with the 10-year Treasury note currently yielding 4.20%, its highest since late in July. The 2-year note currently offers 4.05%, also a fresh multi-week high.

Meanwhile, stock markets are in retreat mode, with most Asian and European indexes having closed in the red. Wall Street trades mixed, with the Dow Jones Industrial Average posting sharp losses and only the Nasdaq Composite trading in the green.

XAU/USD short-term technical outlook

The risk-averse environment suggests the bright metal will continue posting higher highs, with no signs of bullish exhaustion despite technical readings suggesting overbought conditions.

From a technical point of view, XAU/USD is poised to extend its advance. The daily chart shows that the pair trades a handful of cents below its daily high, with technical indicators reaching fresh highs while heading north. Meanwhile, the bright metal runs well above bullish moving averages, with the 20 Simple Moving Average (SMA) currently at around $2,668, far above the longer ones.

The near-term picture supports an upward extension. In the 4-hour chart, technical indicators resumed their advances, maintaining upward slopes, with the RSI indicator heading north despite being in overbought territory. At the same time, the pair develops above bullish moving averages, with the 20 Simple Moving Average (SMA) currently at around $2,718.

Support levels: 2,716.40 2,700.00 2,685.45

Resistance levels: 2,740.00 2,755.00 2,770.00

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.